Another country "touches" recession

On June 15, Statistics New Zealand released data showing that the country's Gross Domestic Product (GDP) in the first quarter of 2023 was negative 0.1%. Previously, the "Kiwi country" also witnessed negative growth of 0.7% in the fourth quarter of 2022.

Thêm một quốc gia 'chạm tay' vào suy thoái

New Zealand's economy has officially fallen into a technical recession. A sailboat is pictured next to the central business district (CBD) of Wellington, New Zealand. (Source: Reuters)

The decline comes as the Reserve Bank of New Zealand (RBNZ) embarks on one of the world's most aggressive interest rate hike cycles.

New Zealand Finance Minister Grant Robertson has confirmed that the South Pacific nation is entering a recession, its first since 2020, when the Covid-19 pandemic forced the government to close its borders, halting tourism and choking exports.

However, Mr Robertson said this was “not surprising”.

2023 is a challenging year with slowing global growth, persistently high and persistent inflation, and the negative impact of climate conditions on New Zealand businesses and households.

While the economy is in technical recession, New Zealand inflation remains high at 6.7%.

Mr. Jarrod Kerr, chief economist of Kiwibank, said that the New Zealand economy fell into recession sooner than analysts predicted.

Source